


Oak Street 
JNCLASSIFIED 


: COMMERCIAL TREATIES 
and TRADE AGREEMENTS 


Incident to Post-War Re- 
construction and Peace 





By FRED BROWN WHITNEY 


Chairman of the American Manufacturers Export Association’s 
Committee on Commercisi Treaties and Trade Agreements 





AN ADDRESS AT THE FOURTEENTH ANNUAL CONVENTION 
of 
THE AMERICAN MANUFACTURERS EXPORT ASSOCIATION 
NEW YORK, OCTOBER 25th, 1923 








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An 


Com 


ercial Treaties and Trade Agreements Incident 


to Post-War Reconstruction and Peace 
By Frep Brown WHITNEY 


Chairman of the American Manufacturers Export Association's Committee on Commercial Treaties and Trade 
Agreements. 


An Address at the 14th Annual Convention, New York, Oct. 25, 1923 


1. Shortly before the Treaty of Versailles, at the 
Ninth Convention of the American Manufacturers 
Export Association, your chairman of the Committee 
on Commercial Treaties and Trade Agreements ad- 
dressed the Association on COMMERCIAL 
TREATIES AND TRADE AGREEMENTS INCI- 
DENT TO WAR, PEACE, AND RECONSTRUC- 
TION. That address is printed on pages 191 to 215 of 
Perort PROBLEMS OF THE UNITED 
STATES, which is the title of the papers read before 
the Ninth Convention. 

A detailed review of this address is suggested to 
those who are particularly interested in the subjects 
outlined and discussed today because therein are de- 
tailed the international natural resources of the Globe 
and the proof that the United States is nearly self- 
sustaining while England, and Europe, except Russia, 
are far below par in raw materials incident to manu- 
factures. A grasp of the real physical conditions 
seems prerequisite to any decision on economic accords 
to preserve peace and prevent war. 

The veterans present will recall that your Chairman 
of the Committee on Commercial Treaties aud Trade 
Agreements twice served as Chairman of the RESO- 
LUTIONS COMMITTEE. Your chairman has ap- 
preciated and enjoyed the confidence placed in him 
and consequently his contacts with many members 
have been numerous and intimate to the degree that 
your Chairman feels he has a fairly clear view of the 
average cross section of the American manufacturer’s 
‘thinking apparatus. The mutual good will and cour- 
tesies will not be violated in an attempt to handle some 
subjects that naturally involve domestic and interna- 
tional radical differences of opinion. Your Chairman’s 
hope is to impersonally, impartially, attempt to outline 
all sides of pending serious international questions in- 
dicated and then leave all members to exercise their 
conscience and self interest. 


2. Brevity precludes a review of the members’ 1918 
facts and opinions; however, it is essential to repeat 
the Chairman’s CONCLUSIONS based thereon. They 
were in part: . 


“Specifically what the United States will do about 
Treaties incident to war, peace and reconstruction, and 
thereafter, is a subject of the future; however, a study 
of the facts, figures and opinions, you have heard, 
may naturally lead one to believe that the substantial 
indications are to the general effect that the UNITED 
SLATES: 


(a) Will come out of the war one of the richest 
and most powerful nations in history. 
(b) Has no desire or design to use that power and 


wealth for any purposes other than beneficial to the 
general welfare of mankind. 

(c) Will not DISCRIMINATE economically or 
otherwise between nations that respect and observe 
the principle that the humblest citizens thereof possess 
the inalienable rights of life, liberty and the pursuit of 
happiness and from such citizens a government de- 
rives its just powers. 

(d) Will not propose changes in commercial rela- 
tions or treaties until the same have been considered 
scientifically by experts familiar with the economic 
needs of the country, the diplomatic relations between 
the countries involved and the character of the legisla- 
tion needed to meet the terms proposed. 

(e) Will not enter into any treaty, ALLIANCE, 
or confederation to give preference by regulations of 
commerce or revenue in order to practice DISCRIM- 
INATIONS, as such, between nations. 

(g) Will, in making commercial readjustments, 
seek to secure concessions especially adapted to the - 
United States products rather than to depend upon 
concessions embodied in treaties with other countries 
which may change their treaty relations without regard 
to or for the economic needs of the United States and 
to accomplish the foregoing, will want distinctive 
schedules and highly specialized classifications in order 
to prevent any discriminations against typical Ameri- 
can specialties and to eliminate the innumerable assim- 
ilations to other articles in which the United States has 
little, if any, interest, in common. 

(h) Will not lend itself to measures designed to 
enable foreign employers to pile up unreasonable 
profits from industry and commerce. 

(i WiLL SO US aise RESOURCES AS 
EOPLRY 1 O PRESERVE THe STANDARD. OF 
LIVING OF THE AMERICAN WORKMEN. 

Such were the outline views of the average Ameri- 
can manufacturer in 1918 when your chairman at- 
tempted to generalize the serious conclusions of the 
men most interested in the foreign trade of the United 
States. 


{ 

3. Some seem to feel that foreign propaganda has 
made attempts to secure from the United States propo- 
sitions incompatible with these principles which the 
average American manufacturer in 1918 felt essential 
to reconstruction and peace after the World War. 

Perhaps alien statesmen and diplomats, especially of 
the decadent royalist types, and their American well- 
wishers, might have saved their meat, manners, and 
propaganda money, if they had grasped the full mean- 
ing of what the American export manufacturers out- 
lined for the guidance of the United States in our for- 
eign business relations. 








[3] 








Americans naturally lean towards Republics abroad 
and will hardly volunteer aid to those who would re- 
store autocracy in Germany and Russia; however, 
those who are attempting other forms of government 
might well weigh the principles outlined by the export 
manufacturers if they desire to expedite recognition 
by the United States Government. 


4. CURRENT STATUS OF COMMERCIAL 
TREATY DEVELOPMENTS. 

(a) Secretary of State Hughes is the authority for 
the claim that the relations between the United States 
and the South American countries were never more 
satisfactory or carried better promise of mutual good 
will. 

There are no controversies with any of our sister 
Republics which have not been settled or are in the 
process of adjustment. 

An accord with Colombia has been perfected. 

Diplomatic relations are now established with Mex- 
ico and our exporters expect to gain thereby. 

(b) The United States in making an independent 
Peace with Germany reserved all the commercial and 
trade rights granted by the Treaty of Versailles to 
others. 

Our strictly technical trade rights were covered by 
the ancient treaty of commerce which dated back to 
1799 and 1828. War suspended the treaty. Peace 
legally revived it technically; however, the United 
States denounced it and no substitute has been per- 
fected. 

On October 10, 1923, the Associated Press reported 
that negotiations of a treaty of amity and commerce 
with Germany will be undertaken on the return to 
Washington of the German Ambassador. 

There have been preliminary exchanges of views. 

(c) Spain is reported to have concluded new 
treaties with France and with Great Britain, giving 
commercial advantages which the United States does 
not possess, except under the most favored nation 
clause. 

It is reported that the United States plans a new 
commercial treaty with Spain and also with the coun- 
tries which were formerly Austria-Hungary. 

(d) Preferential tariff rates granted by Belgium 
to France under a recent commercial treaty are ex- 
tended automatically to similar American goods under 
the 1875 convention. The major items are: automo- 
biles, rubber products, typewriters, sewing machines, 
leather goods, and some classes of machinery. 

(e) The British, French and Spanish experts on 
Tangiers have reported a plan for a nominal recogni- 
ion of the Sultan’s sovereignty but actual administra- 
tion by an international body. 

It is not reported what the United States status will 
be in Tangiers. 

(f) It is claimed that Soviet Russia is now trading 
considerably with the United States but routing the 
trade financially through England and Germany. Rus- 
sia wants more direct contacts. 

Senator McKellar leads one group which favors a 
trade pact with Russia PROVIDED Russia guarantees 
that her trade representatives will not conduct agitation 
against our sort of government and our institutions. 





Congressman Britten reported after an interview 
with the Russian trade commissioner that the Russian 
claims that President Harding’s speech at San Fran- 
cisco closed the door to further hopes for a meeting 
of the countries on a commercial treaty. 

The Congressman says that the Russian _ official 
claims that new Russia could not be responsible for 
debts of the former Russia and that there is NO inten- 
tion to pay back to the United States the millions 
loaned during the war. This Congressman leads a 
group that opposes trade agreements with Russia. The 
current reports are that Russia and France are nego- 
tiating a trade agrement predicated upon Russia’s 
recognition of pre-war financial obligations to France. 

The attitude of our Secretary of State on Russia is 
a well known matter of public record. 

g. The European habit of providing governmental 
influence and power for the exploitation by private 
capitalists of the resources of various countries means 
an aggressive diplomacy which seems to often create 
disappointment among Americans whose principles call 
simply for equality of treatment and the so called open- 
door in commerce. The United States does not seek 
preferential treatment in the Western Hemisphere 
when commercial questions are involved. 

Wherever Great Britain is dominant, the United 
States seems to have a hard time arguing for equality 
of treatment. 

The protracted dispute over equal oil rights in the 
Near-East seemed to reveal Americans opposed by 
Great Britain. Even the Dutch company appeared to 
be influenced by British interests against American 
interests. The British Government is a dominating 
stockholder in an oil company. 

It may take a long time to’ put the tentative treaties 
through the diplomatic and legislative machinery but 
the subjects are quite serious and worthy of time and 
sustained effort to protect American interests abroad. 

5. Acurrent report is that the LEAGUE OF NA- 
TIONS’ ECONOMIC SECTION has finished a 
PROTOCOL ON COMMERCIAL ARBITRA- 
TION. 

All ratifying countries will obligate themselves to: 

A. Enforce decisions made in their own districts. 

B. Proceed in arbitration in conformity with the 
law of the country where arbitration takes place and in 
accordance with the contract provisions. 

C. Recognize the validity of all agreements to sub- 
mit existing disputes between subjects of the signa- 
tory countries to arbitration or clauses in contracts re- 
ferring potential controversies to future arbitration. 

D. Transfer to arbitration all cases where it shall 
appear in Court that the contract provides for such 
arbitration. 

Great Britain is expected to lead in the ratification 
of the protocol. 

Awards made in other countries are not covered. 

Nationals of the signatory countries may avoid 
foreign litigation by inserting arbitration clauses in all 
contracts between such nationals. 

6. The United States has arbitration treaties with 
at least 19 countries. é 

7. There is now pending arbitration between the 








[4] 


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United States and Great Britain on numerous pecuni- 
ary cases, under the treaty of 1910. The World War 
interrupted the arbitration. Some of the claims grew 
out of occurrences during the Spanish-American war 
and in the South African war in 1899. One goes back 
to the war of 1812. 

_Numerous controversies arose during peace and in- 
volve personal and property rights of the nationals of 
the two countries. 

One naturally wonders whether the arbitration un- 
der the League of Nations protocol will be speedier 
than current forms, which apparently give the heirs of 
the original claimant the major interest in any award 
during one or two generations after the incident from 
which the claim arose. 

8. Nationals of all countries are principally inter- 
ested in treaties, agreements and accords of a general 
public nature. 

International obligations which involve debts, war, 
peace and ECONOMIC ACCORDS to preserve peace 
concern manufacturers, especially those who export 
any great part of their production. . 

meetay SECRETARY OF STATE HUGHES 
in his recent Canadian address started in part, “ I BE- 
Peover LHAT WE SHALL: BE ABLE AT NO 
DISTANT DATE TO KEEP WITHIN REASON- 
ABLE BOUNDS SOME OF THE PRESSING 
ECONOMIC RIVALRIES BY FAIR INTERNA- 
TIONAL AGREEMENTS IN WHICH SELF-IN- 
TEREST WILL SUBMIT TO MUTUAL RE- 
fc lONS IN THE: FURTHERANCE: OF 
FRIENDLY ACCORD.” 

This land-mark in American diplomacy naturally 
created immediately a sustained interest on the part 
of American manufacturers, especially exporters, who 
are most vitally and directly involved in international 
restrictions on the economic intercourse between na- 
tions. 

Your Chairman feels that no confidence is violated 
when he states that he believes that the average Ameri- 
can export manufacturer is quite sympathetic in 
PRINCIPLE towards Mr. Hughes’ economic accord 
feeler and might favor and foster such accords PRO- 
VIDED, in practice, the same do not involve the ma- 
terial lowering of the American tariff or the fixing, in- 
ternationally, of tariffs and the settlement of tariff 
disputes by the WORLD COURT of the League of 
Nations. 

None should interpret that statement to the effect 
that the average American export manufacturer is not 
in favor of a tribunal to decide international differ- 
ences. In 1917 our Association voted for such a 
tribunal after a referendum questionnaire was sub- 
mitted to some 700 members. No member has ex- 
pressed a change of views to your Chairman, who then 
was Chairman of the Resolutions Committee. 

The economic accord announcement of our Secre- 
tary of State naturally caused an inventory of the 
foreign conditions which may help or hinder the suc- 
cess of the economic accord movement. 

(b) A. Emil Davies of the London County Council 
in a recent American address on “THE ECO- 
NOMICS OF INTERNATIONALISM,” stated, 


“Unless a SPECIAL economic department of IN- 
TERNATIONALISM operates to substitute a better 
plan for the present supply and demand theory of ne- 
cessary foodstuffs, England and all Europe WILL BE 
PAWNED TO AMERICA.” 

(c) At the INSTITUTE OF POLITICS at Wil- 
liamstown this SUMMER, Mr. Culberson was cred- 
ited with the proposal that tariffs be fixed interna- 
tionally and that the World Court should decide dis- 
putes under such fixing. 

(d) A Minneapolis banker proposes to cancel the 
American war loans in exchange for the abolition of 
European tariff walls; however, our principal debtor 
long since concluded an honorable debt payment agree- 
ment with the United States and now seems to be en- 
tertaining propositions somewhat incompatible with 
the general principles of the suggestions of Mr. 
Hughes, a Minneapolis banker, and Mr. Culberson. 

(e) Reference is made to the ECONOMIC CON- 
FERENCE OF.THE BRITISH PREMIERS. 

Imperial preference seemed to be the watchword of 
that conference. 

Californians noted the strong support for the pro- 
posal to admit Dominion dried fruit free and impose 
a 10% duty on California products. 

The Dominion Premiers were reported as urging 
tariffs on NON-EMPIRE WHEAT, maize and meat. 

The preference enjoyed by colonial sugar and TO- 
BACCO may be increased and lower duties be pro- 
vided by the dominions for British manufactures. 

The October 10 cables were to the general effect 
that the conference was considering a purchasing 
POOL for empire food and raw materials and a dis- 
tribution plan for Great Britain. 

The Chancellor of the Exchequer stated that since 
1919 the policy has been to give preference to the 
colonies and dominions in public contracts and that 
such a policy would be continued. 

Mr. Chamberlain reported that the air board last 
year bought no foreign supplies and the navy none ex- 
cept 1% of the fuel oil. 

The war office bought from abroad only specialties 
and foodstuffs unobtainable in the Empire. 

OBJECTIONS WERE RECORDED against the 
purchase of PUMPS by a colony from AN AMERI- 
CAN BRANCH FACTORY in the Empire and assur- 
ances were recorded for non-repetition. 

The First Lord of the Admiralty reported an at- 
tempt to induce the British sailors to smoke Empire 
tobacco in place of VIRGINIAN. 

The President of the Board of Trade announced 


the Government’s readiness to guarantee the capitai ~~ 


and interest on public utility work in the crown colo- 
nies that used British products. 

The Australian Premier demanded preferential 
tariffs and a policy of retaliation. Your recollection 
is directed to the British CREDITS ACT to help 
flax, cotton, woolen, worsted yarns and manufactures. 

The British Facilities Act provides a quarter of a bil- 
lion dollars to foster British industry. 

The Safe-Guarding of Industries Act to license im- 
ports and tax imports is well known in America and so 
is the Stevenson Act or the control of rubber exports. 








[5] 


» 


The American oil interests appreciate fully what it 
means to have the British Government in direct control 
of the ANGLO-PERSIAN OIL CO. 

One must recall that the current Premier of Great 
Britain, when President of the Board of Trade in- 
sisted that the proper British policy is the intensive 
development of new markets to take the place of those 
destroyed or diminished by the war. His survey indi- 
cated that the promising fields were the Empire, the 
Orient and South America. 

As Your Chairman speaks today all England is 
awaiting the economic declarations of Premier Bald- 
win. The forecasts claim that the British Premier 
will tell the Premiers of the British Empire that 
England proposes all round PROTECTION of 
British industries by a scientific tariff. It is claimed 
that imported manufactures will be taxed and the pro- 
ceeds used to subsidize dominion and colonial pro- 
duction of COTTON, WHEAT, and MEAT. 

American farmers are given something to think 
about and American exporters who favor economic 
accords or even free trade will watch with keen inter- 
est whether Baldwin is to continue in power or be re- 


lieved by others, among them, the Liberal Party 


Leader, H. H. Asquith, who once stated: 


“THE ONLY HOPE FOR RECONSTRUCTION 
AND REBIRTH FOLLOWING THE WAR LIES 
IN THE DEGREE TO WHICH THE NATIONS 
OF THE WORLD AGREE TO APPROXIMATE 
UNIVERSAL FREE TRADE.” 


(f) The U. S. Commerce Reports, No. 150, state 
that in some instances Germany has had an actual in- 
crease in exports of HIGHLY manufactured goods 
over pre-war figures. 

The press reports indicate that Europe is under- 
selling American manufactures in laces and em- 
broideries in spite of a 90% tariff. 

It is claimed that Belgium textile mills for the 
current year are using 60% Indian and 40% Ameri- 
can cotton. 

It is claimed that European manufacturers, assisted 
by their Governments, are actively pursuing a policy 
of seeking markets other than the United States for 
raw materials. 

A Chicago newspaper says that no tariff wall will 
be adequate to protect American manufacturers in the 
face of industrial cooperation and expansion expected 
in Continental Europe and that a revival of the 
American valuation idea is anticipated. 


(g) At an hour when such statements are being 
made, Mr. Culberson and Mr. Asquith appear to find 
sympathy in America. 

The Chairman of the Democratic Party claims that 
“the Republicans can give the farmers much early aid 
by convening Congress and effecting a prompt RE- 
DUCTION OF EXISTING PROFITEERING 
TARIFF RATES and by offering some moral and 
economic cooperation to stabilize and UNFETTER 
international trade so that 250,000,000 underfed 
people in Europe can purchase our surplus foodstuffs 
an re PRICES fixed by the law of supply and 

emand.” 


The great international banker, THOMAS W. 
LAMONT, at Chicago, recently, was reported as say- 
ing, “ WHY has the Continent BUMPER CROPS 
this year? The answer in part is because of the re- 
covery from the devastation of war, but also in a 
large part because our latest TARIFF laws put such 
a barrier against FOREIGN MANUFACTURERS 
that speaking generally, the people abroad are unable 
to sell goods here to the extent that they might other- 
wise and so to establish as large credits as might be 
possible to purchase our grains. If we had not 
favored the idea of doing all the selling and none of 
the buying, our farmers and our MANUFAC- 
TURERS, who are dependent for their prosperity | 
upon the farmers’ demand might have been better 
off.” One editor asked for an explanation on how 
the American farmer is to get a TOP PRICE in 
Europe against the competition of Europe’s own 
bumper crops, which were so amply described by the 
Democratic financier, whose house fathers The In- 
ternational Harvester Co., which has just reported 
marked development in its business. 


The current cable reports are that the British 
financiers have formed with the Russians a powerful 
concern to export Russian wheat. 


(h) The Republican side and opposition to the 
Asquith theory is found perhaps in the recent state- 
ment of the Chairman of the Republican National 
Committee, who claimed that “ World competition 
never has been so keen as it is today. The only safe- 
guard against this menace to AMERICAN MANU- 
FACTURERS is PROTECTION in the form of 
tariff duties. There is no doubt that our industries 
would be prostrate and the nation in the midst of 
HARD TIMES were it not for the FORDNEY- 
McCUMBER tariff law.” 

The NATIONAL REPUBLICAN recently stated, 
“THE DRIVE to. sacrifice the PROSPERITY and 
security of America in behalf of Europe continues. 

European propagandists are trying to control the 
pulpit, the schoolroom, publications, labor organiza- 
tions and women’s clubs.” 


(1) One phase of the doctrine of economic accord 
developed during the war, when the Allies at Paris 
on June 14-17, 1916, declared themselves agreed to 
conserve during the whole period of commercial, in- 
dustrial, agricultural and maritime reconstruction their 
natural resources for the Allied countries before ALL 
OTHERS and for this purpose to establish SPECIAL 
arrangements to facilitate the interchange of these re- 
sources. The United States was not a party to the 
conference and so stood in the all others class; how- 
ever, the project never seemed to amount to much 
after the war; hence, history provides no great assur- 
ance for even this limited form of an economic ac- 
cord or alliance. 


(j) Shortly after this 


Paris conference, the 


American Manufacturers’ Export Association, re- 
solved, that it hoped the armed conflict in Europe 
would not be followed by an economic war that would 
place arbitary restrictions on international commerce 
and industry, and the export manufacturers believed 








[6] 








that in the formulation of commercial treaties, the 
United States should insist upon a due regard for our 
rights and our opportunities, thus assuring to our com- 
mercial and financial interests full protection abroad. 

On October 10, 1917, the Association endorsed 
especially that part of President Wilson’s answer to 
the Pope which states, “ Punitive damages, the dis- 
memberment of empires, the establishment of SELF- 
ISH and exclusive ECONOMIC leagues, we deem 
inexpedient and in the end worse than futile, no proper 
basis for a Peace of any kind, least of all an EN- 
DURING PEACE.” 


(k) The United States Chamber of Commerce 
favored economic war under certain conditions, but 
the A.M.E.A., the Philadelphia Board of Trade and 
_the National Association of Manufacturers’, took a 
position, that an economic boycott would be an un- 
warranted interference in matters of international 
relations. The Merchants Association of New York, 
went on record against economic pressure to regulate 
war. : 

Your Chairman’s investigations lead him to the im- 
pression that Mr. Hughes’ economic accord proposi- 
tion to influence war conditions and peace can com- 
mand practical support among American manufac- 
turers and merchants, even those who are critical about 
keeping private business affairs far from the influence 
or control of domestic and international politicians, 
statesmen and diplomats, PROVIDING, the detail 
plans developed under the principle outlined do not 
violate the recorded views of the American Manu- 
facturers’ Export Association, the members of which 
are probably more concerned than any other great 
group of American voters. 


9. INTERNATIONAL DEBTS AND REPARA- 
TIONS. 

At the annual convention of the American Bankers’ 
Association, on September 24, 1923, FRED L. KENT, 
vice-president of the Bankers’ Trust Co., of New York, 
made a memorable address entitled “ ACROSS THE 
ATLANTIC.” 

It appears to be a master-piece of the propaganda 
for debt cancellation. Probably many manufacturers 
have read the full text or the bankers’ resolutions 
based thereon. Mr. Kent claimed that the flame of 
race hatreds in many countries have been gradually 
dying down as the fact is being recognized that the 
Nations are dependent upon each other to such an 
extent that IT IS TO THE INTEREST OF EACH 
TO MAKE RECIPROCAL TREATIES WHICH 
WILL REDUCE OR REMOVE TRADE BAR- 
RIERS. 

Mr. Kent claimed that actually the American peo- 
ple have no desire to isolate themselves. 

This banker would have the Germans work hours 
longer than eight to create an exportable balance of 
MANUFACTURES from which to secure funds in 
neutral markets to pay off reparations, etc. 


He seems to believe that if the creditor nations trade 
off 60 to 70% of the war loans for agreements to 
establish peaceful and sound economic conditions in 
Europe, world trade and commerce might easily revive 





to such an extent that the monetary return would far 
exceed the total cancelled loans over a comparatively 
short time. Banker Kent intimates that Secretary of 
State Hughes, being a member of the Refunding Com- 
mission, might develop proper agreements by means of 
treaties. For this reason, your Chairman has taken 
note of the debt situation which might develop into 
a treaty subject. 

The bankers resolved that it is their belief that if 
the United States does not recognize and accept 
responsibilities in connection with the reparations ques- 
tions which are preventing our Allies and Germany 
from coming to an agreement that will reestablish 
peaceful conditions in Europe that both our foreign 
and domestic trade will continue to suffer seriously. 
The bankers recommended that the Debt Refunding 
Commission immediately enter into negotiations with 
Great Britain and France, in connection with SUCH 
PART OF THE REPARATION question as may 
be included in the INTERALLIED INDEBTED- 
NESS in order that the Commission may be in a 
position to make such recommendations to Congress 
as it may consider desirable and to the INTEREST 
OF THE UNITED STATES: 

It is hoped that Mr. Kent’s views and the bankers’ 
resolutions have been fairly reviewed. 


(b) In 1918, your Chairman in referring to the 
probable American attitude of the United States af 
the treaty conference, stated, “ Materials, money and 
men, the United States has lost, not gained. No suck 
gains are expected, wanted or needed.” The United 
States asked for nothing other than Peace and got 
less than nothing from Germany or France. Under 
such circumstances, some feel that Mr. Kent and his 
followers among the American bankers have erected 
a debt cancellation structure upon quick-sand. No 
false premise can lead to the conclusion that Ameri- 
cans have side-stepped responsibilities in Europe where 
thousands of dead Americans are an enduring evidence 
that America is not found wanting whenever freedom 
is imperiled. 

The bankers have based their serious recommenda- 
tions upon what they believe to be facts; hence, others 
must verify such facts or find the real situation. An 
inquiry shows that: 


FIRST. Senator McKellar, upon his recent return 
from Europe, stated, ‘““ FRANCE is amply able to pay 
interest on her three billion dollar American debt, and 
the foreign debt commission should urge an immediate 
settlement.” 

SECOND. Senator McKinley, returned from 
Europe, with the advice that Germany could pay a 
reasonable amount in reparations if the Allies could 
agree upon the sum. 

THIRD. The Democratic leader, Senator Robin- 
son, upon his return from Europe, stated that the 
United States intervention in the general European 
situation would result only in more confusion. 

FOURTH.. Congressman Burton, of the Debt Re- 
funding Commission, after a trip abroad, on October 
16th, conferred with President Coolidge, and gave out 
an interview to the effect that the United States has 








[7] 


YN 


every right to expect a settlement of the debts on an 
honorable basis. He hardly thinks the economic con- 
ditions can become good abroad under PREVAILING 
POLITICAL CONDITIONS. He intimated that 
the French policy in Europe seems to be dominated by 
a desire to DISMEMBER GERMANY and obtain a 
stranglehold on the IRON AND STEEL industry of 
the Ruhr, rather than by the hope of collecting 
reparations. 


FIFTH. Senator Smooth is credited by the press 
as unfavorable to any debt cancellation. 

SIXTH. Newspapers with millions of circulation 
in the East, South, North and West editorially com- 
mented upon the bankers’ debt cancellation talks and 
resolutions, in part, as follows: 


(a) “Congress is asked to abandon ISOLATION 
policies and CANCEL the Allied debts FOR THE 
BENEFIT, OF THE EUROPEAN BOND 
MARKET. 

Singularly no emphasis is placed upon the fact that 
WALL STREET in the past four years has pur- 
chased more than a billion of foreign securities. A set 
of. sentiments which manifestly delight farm blocs, 
progressives and taxpayers generally. None are so 
blind as those who will not see beyond their SELFISH 
INTERES Sa: 

“The Allies want our dollars, not sense, as MR. 
POINCARE and associates have shown after each 
offer to mediate the reparations tangle. LOOK TO 
YOUR LIBERTY BONDS. Financiers, owning 
tons of foreign securities here and abroad, approve, of 
course, the cancellation of outstanding entente loans. 

A twelve billion dollar GIFT to governments whose 
pressing bonds are so heavily held hereabout would 
mean a KILLING for WALL STREET and enor- 
mously enhance the fortunes of investment houses with 
huge blocks of DEPRECIATED allied paper—mostly 
bought on the bargain counter. 

Much of the money thus taken from the taxpayers 
pockets would go straight into theirs together with 
the margin between present values OF LIBERTIES 
AND VICTORIES which would immediately drop 
several points as a result of our philanthropic action— 
a depression certain to be profitably anticipated by such 
fiscal experts. A neat way to drop two birds with one 
stone.” 


(b). A Middle West editorial remarked on the 


bankers’ resolutions: 


“A Chicago Democratic organ urges Americans to 
render service to Europe by buying Germany’s bonds 
to pay off the Allies. Once bit twice shy means nothing 
to this journal. Germany flooded the United States 
with nearly a billion dollars worth of paper marks, 
which were afterwards inflated to the VANISHING 
POINT, thus deadbeating innumerable innocent help- 
less American investors, who probably followed some 
pro-Europe banker’s advice. WHY BUY GERMAN 
BONDS AND REPEAT such an incident.” 


(c) Another Western paper stated editorially, 
“The American people are not without effective means 
to CALL A HALT on the European frameup and 


anti-American propaganda. 26,000,000 Americans 
have entrusted seventeen billion dollars to the savings 
banks, while a quarter of our population have on de- 
posit in the United States banks about thirty-seven 
billion dollars. Without these trust funds, the pro- 
Europe American bankers are helpless to play their 
game abroad. 

A DEPOSITORS’ BOYCOTT on all banks that 
attempt to invest one dollar of these trust funds in 
German shin-plasters even with the ALLIES’ EN- 
DORSEMENT, will materially relieve the American 
bankers of the self-imposed task of correcting false 
impressions about economic disasters because such pa- 
per calamities will no longer lurk about the United 
States. 


(d) Politicians seldom ignore the CHICAGO 
TRIBUNE, which remarks: 


“Let President Coolidge bring pressure to bear 
upon these hot-headed and grasping European nations 
to arrange the funding of their debts to us.) THEY 
ARE DEBTS OF HONOR. They MUST be 
EVENTUALLY PAID or national credit will be 
ruined. We would use the money constructively—not 
for war.” 

(e) At the Institute of Politics at Williamstown 
this Summer, Canon Earnest Dimnet of Paris was 
credited with the claim that the United States MUST 
CANCEL the ALLIED DEBTS as a CONDITION 
PRECEDENT to participation in European affairs. 
His belief was that there is no other solution of the 
German problem than floating a loan in the United 
States. He said France believed that this should be 
done. 


(f) The current cable news is that the POIN- 
CARE GOVERNMENT is still ready to seek a 
general settlement with the Allies on the basis outlined 
in the January plan and subsequent French “ yellow 
book,” namely PARALLEL REDUCTION of the 
German debt and the war debt of the Allies, but 
FRANCE is tired of reiterating unheeded the pro- 
posals and if there is to be further initiative it must 
come from Great Britain or the United States. Other- 
wise it is clearly the intention of the French Govern- 
ment to make no further mention of the possibility of 
general negotiations and to devote its efforts solely to 
the exploitation of the occupied territories for the 
benefit of the reparations account.” 


(g) Your Chairman listened to LLOYD 
GEORGE’S plea at Chicago for the acceptance of 
HUGHES’ plan for the determination of the ability 
of Germany to pay some sum certain for reparations. 
The former British PREMIER suggested that failure 
by Germany to pay whatever might be determined 
under the Hughes’ plan, should be followed by a 
UNITED MARCH on Germany; apparently he 
means that the United States should send its army and 
navy to collect reparations for France and Engiand. 
This remarkable Britisher admitted that “ During the 
war, whenever we wanted to know something about 
America, they said to us, ‘Well, it depends upon the 
Middle West.’ ” 








[8] 








If THE CHICAGO TRIBUNE is a fair average 
of Middle West public opinion, Lloyd George’s be- 
lated plea for the HUGHES’ plan, supplemented with 
the suggestion of force to collect money from Ger- 
many, is FUTILE. 


The Chicago Tribune says, “We cannot be the 
armed policeman of Europe. We have been discarded 
as an adviser in Europe. We have been ignored as 
an example. WE.CANNOT BE A FOOLISH 
BANKER FOR EUROPE. We might embroil and 
impoverish ourselves with no consequences except to 
our Own hurt. WE MIGHT LOSE THE PEACE 
ON THIS CONTINENT WITHOUT GAIN- 
ING TT PFOR THE OTHER.” 


(h) You have heard considerable opinion from 
bankers and journalists, and now you may listen to 


~ pointed remarks to your Chairman by members of the 


Association. 


One of the most experienced and prominent manu- 
facturers in America informed your Chairman that— 
“The international bankers have an extensive knowl- 
edge of international finance, but they are not IN- 
FALLIBLE. As a matter of fact some of them are 
positively opposed to_cancelling these debts. But, 
looking back over the last eight years, the forecasts 
of the international financiers have been wrong more 
often than right. During that period I have sold 
British exchange above par and at other times over 
30% below par. During that period I have sold ex- 
change on many neutral countries which were not con- 
cerned in the war at substantially above par and at 
other times very much below par. The advocates of 
cancellation may impress those who have given the 
question of international commerce little thought or 
study, except perhaps during the last few years, but 
they will not impress many of those who have been 
doing EXPORT BUSINESS FOR A SCORE OR 
MORE YEARS. A great many forget that a very 
considerable portion of this money was loaned by the 
United States to the European countries after the 
signing of the Armistice. I believe that the people of 
this country were reconciled to that loan by false 
propaganda carried on while the Peace Commission 
was sitting in Paris, scaring our people into the belief 
that if we did not help Europe out the BOLSHEVIKS 
would get Europe and then get us. I was in Europe 
during several months of that period and know that 
accounts sent across by the American newspaper corre- 
spondents were grossly colored. A rigid censorship 
was maintained and a correspondent who did not send 
scary stuff could not send any. 


We did right in going into the war, but we did it 
because it was necessary to clean up a bad mess which 
was the result partly of national vanity and partly the 
OVER-POPULATION of Europe. 


Cancelling these debts will not, in my opinion, hasten 
returning to normal. In three years Europe has made 
more progress towards recovery than she did in thirty 
years following the NAPOLEONIC WARS. If 
these debts had been cancelled when the idea was first 
advanced, I do not believe that Europe would have 





made as much progress as she has during three years. 


EUROPEANS MUST AND WILL BUY FROM 
US UTTERLY REGARDLESS OF OUR EXER- 
CISE OF FURTHER ALTRUISM. The argument 
that if the debt account stands and the interest is paid 
regularly exchange will be so demoralized that we can- 
not export to Europe is also fallacious. 


France is not concerned for fear that she cannot 
export to Germany if Germany pays the indemnity and 
Germany has been one of the best markets for France. 


In France and Italy there is no gratitude towards us 
on the part of the general public and many of the lead- 
ing men. They fail to recognize that it was not our 
war, that France had a great deal to do with bringing 
it on—that it was their quarrel, not ours, and that we 
came in and saved them. France even has no sincere 
gratitude to England for SAVING HER LIFE, much 
less for Italy or Russia. 


I have found when talking with Englishmen and 
Frenchmen that they first argued tnat we ought to 
cancel the debt, because it was a war of common in- 
terest, which I was not prepared to fully admit and 
which idea they did not press when the major facts 
leading up to the war were stated to them. They 
generally fall back on the theory that we should be 
A GOOD FELLOW and cancel the debt any way. 
Then, when I suggest that it might be a good idea for 
them to start the movement of being a good fellow 
and turn over to us some of their islands in the Carib- 
bean Sea in partial payment of the debt, they imme- 
diately want to change the subject. The principal 
value of these islands are iu case of war. They are 
not revenue producers. 


Their main value to France and England is to hav: 
a gun pointed at our ditch across the Isthmus as a 
factor in diplomatic negotiation and in war, if we ever 
have trouble with them.” 


(1) IRVING T. BUSH, President of the New 
York State Chamber of Commerce, upon his return 
from Europe, stated much that is of special interest to 
American manufacturers and in part, as follows: 


“ Stabilized conditions will stimulate MANUFAC- 
TURING in Europe and more commodities will be 
produced to COMPETE with us in the markets of 
the World. If we keep our eyes on our own markets 
and treat as welcome additions any orders we may re- 
ceive from Europe, we will be on solid ground, for 
conditions in this country are sound.” 


(j) Judge Gary recently stated, “We should all | 


remember that the United States is a very big coun- 
try and VERY RICH and on the average PROS- 
PEROUS:. 


(k) President Hibben, of Princeton, returned from 
Europe recently and stated, “ Germany is not starving, 
but is prosperous; the people including the working 
classes are flocking to restaurants and cafés and have 
plenty of food and beer.” The last item may make 
some Americans feel that Germany sits on top of the 
World. The college economist claimed that he did not 


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find any evidence of poverty or unusual distress in 
Germany. 


(1) President Julius Barnes of the United States 
Chamber of Commerce was recently credited with the 
press statement that the United States during the last 
few months established TEN PRODUCTION REC- 
ORDS, as follows. THE LARGEST produc- 
tion of pig iron, ingot, crude oil, autoniobile and truck, 
locomotives, cotton consumption, and the largest 
volume of mail order sales, retail sales and car load- 
ings. Since 1913 our annual income has increased 
from thirty-four to fifty billion dollars and the aggre- 
gate savings deposits have increased from six billion 
to fourteen billion dollars. 


Even under such circumstances Banker George 
Reynolds of Chicago claims that money cannot help 
Europe at this stage of the game, and that we need 
the money here. 


The President of the largest bank in America has 
this for American manufacturers. “ Our leading lines 
of manufacture have been surpassing the records of 
war time production. In the past five years we have 
been gradually breaking away from ECONOMIC 
DEPENDENCE upon the outside world. The oppor- 
tunities for trade outside of the DISTURBED 
AREAS of Europe are so great that our dependence 
upon the latter is comparatively slight and yet business 
with those disturbed areas continues moderate in 
volume. We take from them little that is essential to 
us, but what they take from us is VITAL TO THEM. 


If we look for the explanation of-the wonderful 
American demonstration of inherent strength and 
recuperative powers of the United States, we will find 
at least 90% within our own borders. 


I am not afraid of the ability of this country to 
compete in the long run and to secure an ample share 
of world trade, PROVIDED, we NOW recognize that 
COMPETITION is coming and that it is going to 
be vigorous and that to meet it, we must loosen every 
restraint to American industrial development to the 
end that in this country there may be AN EFFI- 
CIENCY which will overcome a HIGHER STAND- 
ARD OF LIVING and still make us able to do busi- 
ness on the world’s price level.” 


(m) The wages in the United States are far above 
the European levels on a purchasing power basis. The 
British Ministry of Labor collected figures on the 
amount of food that can be purchased with 48 hours 
of labor and reduced the same to an index figure of 
100; the results are: New York, 217; Ottawa, 180; 
Amsterdam, 103; Christiania, 92; Stockholm, 87; 
Warsaw, 85; Brussels, 70; Paris, 68; Prague, 67; Ma- 
drid, 61; Berlin, 57; and Vienna, 55. 


(n) It might not be unkind to suggest to the debt 
cancellationists that it may be difficult to prove to 
AMERICAN LABOR how its percentage of 217 can 
be greatly improved by debt cancellation. Mr. Kent’s 


_ major premises at least seem questioned by the facts 
and opinions you have listened to. 


(0) Your Chairman’s contacts with many members 
of the Association lead him to the belief that the aver- 
age American export manufacturer does not think that 
a remission of our foreign debt would be detrimental 
to American exports; however, there is no indication 
that 10% would favor the cancellation of the debts; 
yet, the majority would grant proper debt concessions 
to facilitate ultimate and definite payment. 


The average American export manufacturer would 
not advise American bankers to loan money to finance 
German-Allies factories; however, no objections 
would be recorded to private loans based upon the 
ordinary business considerations of individual cases 
that merit accommodation. 


The average American export manufacturer is will- 
ing to join in international accords to avoid war: how- 
ever, he does not appear anxious to BUY PEACE 
from France for Europe, in the event Premier Poin- 
care’s terms of exploitation of Germany for repara- 
tions are unalterable if the United States does not con- 
cur in the proposition of a cancellation of the inter- 
allied debts in order that the German reparations to 
France may be reduced by the amounts cancelled by 
the United States. There is no evidence that the 
United States will entertain the idea of paying Ger- 
many’s reparations to France in any form. 


There is also little evidence that the average ex- 
porter objects to French attempts to collect for French 
account from Germany ; however, your Chairman fails 
to find signs that the United States will join England 
in any movement to publicly influence France or 
MARCH ON BERLIN to collect reparations for 
France. Lloyd George made an eloquent appeal for a 
union between America and Great Britain for the man- 
ifest purpose of influencing France ; however, the reac- 
tion does not seem favorable and the American Legion 
even declined to vote for the entry of the United States 
into the World Court but its heads have found no fault 
with French occupation of the Ruhr. 


Nevertheless the average World War veteran 
usually tells you, NEVER AGAIN WILL THE 
UNITED STATES FIGHT FOR EUROPE. 


Germany does not appear sincere in promises of 
reparations and experienced Americans abroad seem 
to feel that Germany has not the least intention of pay- 
ing France what France wants and expects; perhaps, 
France can get blood out of the German stone at an 
hour when Lloyd George admits England knows she 
cannot get much reparations ; however, France is play- 
ing a lone hand, as is evidenced by the attitude of the 
current administration in the United States and Eng- 
land. 


Technical Status of Foreign Loans 


Debt settlements have been made with Great 
Britain and Finland and little progress appears of 
record in regard to others, who owe an aggregate prin- 
cipal amount of $5,970,117,427 and accrued unpaid in- 
terest of $1,088,457,470, or in all to date the indebted- 
ness appears to be $7,058,574,897. 


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[10] 





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Specifically the amounts owed by each are: 


Seite: eae Ras ah aka $14,263,096 
OM ek oe cake ais iy. ou. eos lke 27,004,065 
DEMS fares «Sunt 5 fee 445,782,734 
meceno- siovakia .......-.%5. 109,423,344 
MINS Ped hs ecta scree oes 16,788,728 
BERCEIN IS cola cvs ses 6 3,917,325,9074 
0 a i ee 16,125,000 
So a eee ee 1,989,286 
ORM Gee dag ae ace», ais ece4' 3,0 1,973,879,133 
MU crear wie soe wie o's 6,032,478 
MRAM ee ccvace act soos oe 30,108 
2 Se ae re 5,977,953 
| Se 181,839,315 
oS a 43,218,878 
6 Ee re 237,242,054 
i a a 60,992,592 


Secretary Mellon granted Austria a twenty year 
postponement for payment. 

The commission has not been in touch with Ar- 
menia, Greece, Liberia, or Russia. 

France sent a representative to negotiate and he re- 
turned to confer with his Government and no further 
proposals have been received since. 

It is claimed that the commission HOPES to obtain 
further adjustments at the earliest possible date. 

_ In reference to the argument that the United States 
should aid France in collecting reparations from Ger- 
many, one of the Governors of our States says “ THE 


meee OestALES SHOULD NOT BE A COL- 


LECTING AGENCY. THERE IS NO MORE 
RIGHT OF A NATION TO ENFORCE PE- 
CUNIARY CLAIMS IN BEHALF OF THE NA- 
TIONALS THROUGH ARMIES AND NAVIES 
fee ue RE IS TO CALL OUT THE NA- 
TIONAL GUARD OR THE REGULAR ARMY 
TO ENFORCE COLLECTION OF A MORT- 
GAGEE’S NOTE AGAINST ANOTHER CITI- 
ZEN.” 


Republican Administration’s Attitude on Debts 


10. The White House intimations of October 5th, 
1923, were that President Coolidge is strongly opposed 
to any proposal from whatever source looking to. the 
cancellation of the debt that the European Powers owe 
to the United States. 


It was reported that our President does not contem- 
plate any departure from the requirements laid down 
by Congress in the debt refunding act as to how the 
obligations should be handled. This act does not con- 
template any discriminations between debtors. The dif- 
ference between the war loan rates of interest and the 
interest conceded to the British in the settlement over 
the period of years of payment would mount to a sum 
eyual to the British capital indebtedness to the United 
States at the time of refunding. This aspect of the 
situation is reported as going far enough to meet the 
demands of the cancellationists here and abroad. 

The press has recently reported President Coolidge 
as unfavorable to any conferences abroad, economic or 


political; consequently France and England appear to 
be left to their own devices to handle Germany as they 
will. 


Of course there will be a big drive to influence the 
Republican Administration to accept Lloyd George’s 
proposition for the United States and Great Britain 
to join forces and fix the reparations matters regard- 
less of France; however, such propaganda must dis- 
count the attitude of the Middle West opinion which 
seems to be recorded by the Chicago Tribune editorial 
you heard and by its news item, as follows. Its Lon- 
don correspondent cabled an inventory of the serious 
problems the United States would be plunged into if 
it accepted Lloyd George’s plan for an unwritten treaty 
for united action between the United States and Great 
Britain. Some of the problems are: Reparations and 
the Ruhr, League of Nations, Tangier, Unrest in In- 
dia, Constantinople and the freedom of the Dar- 
danelles, Asiatic complications including the misunder- 
standing and estrangement of Japan, obscure bicker- 
ings and intrigues of ambassadors’ council in connec- 
tion with the settlement of numerous disputes between 
your European nations born of the war. 


Alone Great Britain cannot impose her will on the 
less tractable nations. Allied with America, however, 
England would possess the authority to impose her 
will on other nations to their discontent and resent- 
ment and probably would involve America in so doing. 
Temporary tranquillity might be restored in Europe 
but the enduring hatred of the nations whose policies 


are thwarted would be obtained. Hatred usually leads _ 





to trouble and the United States would not be neutral. 


IN CONCLUSION, may your Chairman state that 
he lived many years abroad prior to the World War 
and believed he understood something of the human 
nature of Europeans; however, conditions have so 
changed abroad, that your Chairman dares not venture 
personal recommendations for the remedy of European 
conditions that puzzle many. 


Our Secretary of State has proposed a great propo- 
sition of economic accords which in principle meets 
naturally with wide approval. It is evident that our 
public officials are thinking long and hard and it is 
suggested that they should have our sympathetic sup- 
port in whatever they determine is tu the best interest 
of all Americans. The currents are many and cross 
Lut our Government has knowledge superior to that 
of the average citizen; hence, it might be well for ex 
porters to watch with intelligent interest all the Gov- 
ernment intimations and quietly advise our officials in 
all cases where members feel it is to the interest of our 
fellow citizens. 


Your Chairman trusts that he has been able to make 
the members more fully appreciate the serious prob- 
lems that confront our public officials in their admin- 
istration of our foreign relations and that the net re- 
sult may be intelligent cooperation and support for 
those in authority in order that the paramount inter- 
ests of all Americans may be better served in relation 
to our international commercial and industrial affairs. 








[11] 











. 





The Resolutions Adopted at Fourteenth Annual Convention — = 
AMERICAN MANUFACTURERS EXPORT ASSOCIATION 
The following resolutions recommended by the Resolutions Committee, consisting of Fred 


B. Whitney as*Chairman, Frank H. Taylor, Julius Goslin, Charles W. Beaver and A. E. Ash- 
burner, were adopted by the Convention, October 26, 1923. 


“The American Manufacturers’ Export Association, 
assembled in the Fourteenth Annual Convention, hereby 
resolves as follows: 

“tT. It reciprocates the message of good will and in- 
terest of President Coolidge, whose official acts, words 
and exhibited integrity of purpose have so commanded 
the universal respect and united support of the Nation 
that the American Manufacturers’ Export Association 
finds itself justified in recording a pledge of intelligent 
cooperation with the President of the United States in 
his conduct of the foreign relations of our country, 

“2. It thanks its retiring President, Myron W. Robin- 
son, whose devotion to duty has resulted in a record of 
unprecedented success for the Association and it pledges 
its support to President-elect W. W. Nichols, whose 
many years of unstinted toil for the Association is a 
token of the ability that will lead the Assocation on its 
path of progress in the promotion of the export affairs 
of the United States. 

“3. It records with sincere thanks the service rendered 
by its officials, committees, speakers and delegates, the 
press and the National Foreign Trade Council, all of 
whom have made the Convention an unprecedented suc- 
cess at an hour when the foreign trade affairs of the Na- 
tion attract the attention of the world. 

“4. It believes that its pioneering in the promotion and 
protection of the export affairs of the United States has 
resulted in an American export trade conscience and a 

ME 16 public recognition ot the tact that the volume of the 
~~ exports of the Nation largely determines the margin of 
- stimulating profits for our banks and factories and the 
high standard of living of the American artisans. The 
y foundation for the permanent establishment of our ex- 
port trade was tested by the trade depression of 1921. 
At this Convention it is obvious that such foundation is 
firm and that it is possible for all American manufacturers 
to safely, permanently and profitably engage in an ex- 
port business without feeling that they are embarking 

upon uncharted business seas. 

“cs. It notes with keen and sympathetic interest the 
diplomatic innovation of the principle of economic ac- 
cords to promote and preserve peace over the globe and 
trusts that the practical development of such a principle 
will not involve tariffs, which are largely regarded as 
matters of revenue and domestic policy, and it hopes that 
the practical application of the principle of economic ac- 
cords will not violate the principles set forth in detail in 
BD fie oes of the previous conventions of this Asso- 

: 1on. It favors the prompt enactment of laws to re- 
organize our various government activities abroad so 
as to create a united foreign service. It believes that 
such a reorganization will enable our Government to sup- 
port our nationals abroad with an effectiveness that has 
heretofore been impossible. 

“6. It records the fact that the majority of its members 
do not feel that a remission of our foreign debt payments 
would be detrimental to American exports at an hour 
when a majority of its members think that there should be 
no approval of the idea of debt repudiation, cancellation 
or discrimination between debtors, but that proper con- 
cessions should be granted to guarantee reasonable pay- 
ments and promote better trade relations between the 
United States and the debtor nations, provided it is proven 


conclusively to the Government and the American people 
that all concessions are adequately offset and guarantees 
are provided to equal in value whatever may be conceded 
in meritorious cases. 

“7. Its 1922 Convention proposed the idea of a World 
Economic Conference, which was endorsed by the Cham- 
ber of Commerce of the United States. It reiterates its 
belief in the wisdom and value of such an economic con- 
ference and trusts that all parties in interest may exclude 
all non-economic objections thereto and then join in the 
call for a business man’s economic conference, which sh: 4 
restrict its program to purely economic subjects, without 
reference to the inter-allied debts, territorial guarantees, 
mutual military pledges of united action in potential con- 
flicts of arms and all such other matters that are not ger- 
mane to the non-political problem of restoring international 
trade stability and its attending health and happiness. It 
is prepared to cooperate by appointing delegates to such 
a business-man’s conference. It is convinced that ways 
and means can be perfected to restore normal business 
relations between the nationals of all countries, especially 
European and the United States. 

“8. It accepts the assurances given in respect to bank- 
ing and credit insurance that facilities will be expanded 
to at least equal whatever is available to our competitors 
abroad. 

“g. It expects alert and enterprising American ship- 
owners to provide reoular, denendable and efficient over- 
seas steamship service at public, uniform and non-prefer- 
ential freight rates, and in return for the same it pledges 
genuine interest in American ships, and it will urge its 
members to consign goods to foreign ports in American 
bottoms and adequately patronize all American vessels 
which form a potential part of the naval reserve of the 
United States. It records the hope and wish that the 
Government and the private shipowners will promptly 
perfect a mutually satisfactory plan which will take the 
Government out of the shipping business and restore the 
same to private business. It believes 100 per cent in the 
principle of a privately owned and privately operated 
American Merchant Marine during peace. 

“to, It recommends that the American harbor and 
port commissions incorporate in all permanent improve- 
ments and betterments, the most modern facilities, includ- 
ing enclosed docks and warehouses, mechanical convey- 
ors, loaders and other time and labor-saving mechanisms, 
concentration warehouses, classification bays, dock and 
warehouse dunnage, adequate fire protection, loading 
stages, correctly constructed slings, winches and cranes 
and all other practical means to safely, quickly and cheap- 
ly handle freight. 

“tr. It feels certain that some foreign countries might 
be induced to modify their patent laws, especially the 


' working features thereof, in favor of American citizens, 


providing the United States enacts legislation designed to 


subject the foreign applicant for a United States patent . 


to conditions equal or similar to the limitations placed 
upon the American patentee by the country of such for- 
eign applicant. 

“12. It is a pleasure to record that the exporting of 
American products has become a permanent, dignified and 
essential factor in American affairs.” 





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[12] 


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